Spectacle Entertainment has bought Majestic Holdco, Majestic Holdco and its subsidiaries;The Majestic Star Casino and The Majestic Star Casino.
The two subsidiaries own and operate adjacent dockside casino vessels at Buffington Harbor in Gary, Indiana, a 300-room hotel, 2,000-space parking garage, and a pavilion containing land-based restaurants, bars and meeting facilities.
Majestic Star and Majestic Star II are among the smallest casinos in the state. Majestic Star, ranked third lowest in terms of GGR, generated $92.2m in 2018, whilst Majestic Star II finished as second lowest with $59.8m.
Spectacle wants to relocate one casino within Gary and move the other license somewhere else in the state, but an exact location has not yet been found.
Previously, Majestic Holdco sold Majestic Mississippi, the owner and operator of a casino and hotel in Tunica, Mississippi, to Foundation Gaming Group in August 2018.
“We are delighted with this transaction and believe it is in the best interest of our members, team members and customers. In addition, we are convinced that Spectacle’s ownership will provide the right vision and support to undertake the Company’s next phase of growth.”
Spectacle Chairman & CEO Rod Ratcliff said: “Spectacle’s acquisition of the two gaming licenses located in Gary presents a tremendous economic opportunity for the City of Gary as well as the State of Indiana. We welcome the prospect of working with Gary and the General Assembly to maximize the value of these two licenses by allowing Buffington Harbor to become part of an intermodal hub, creating additional employment and increasing state and local tax revenues.”
Spectacle Vice Chairman Greg Gibson added: “Although my entrepreneurial background has not been in the gaming industry, I am encouraged by what this opportunity means for our State. We can’t stand idle and ignore the competition other states are pursuing; instead we must be timely and nimble. Indiana is home and I want to see it thrive.”
Majestic Holdco CEO Peter Liguori said: “We are delighted with this transaction and believe it is in the best interest of our members, team members and customers. In addition, we are convinced that Spectacle’s ownership will provide the right vision and support to undertake the Company’s next phase of growth.”
The transaction is subject to receipt of regulatory approval and is expected to close in the first quarter of 2019.